Connect Centre | 56.3m | 16s | ONE Properties | DIALOG

What do you think of this project?

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Yeah all three cities are very close population wise, essentially all about the same size, as 50,000 to 100,000 difference on 1.5 million or so is not huge. Interestingly, when people compare Vancouver and Seattle they are also two nearby cities with similar populations, surely one is larger, yet it doesn't seem to be much of an issue.

So it really shouldn't matter that much, a focus on rankings really doesn't catch the nuance here. I suppose it falls upon us to explain it a bit more when possible.
 
How is it that Westrich Pacific can build the Ultima, Encore and the View with 100, 90 and 74 percent sold respectively but One Properties can't get this single tower built? What am I missing here?
 
cpnfantstk said:
How is it that Westrich Pacific can build the Ultima, Encore and the View with 100, 90 and 74 percent sold respectively but One Properties can't get this single tower built? What am I missing here?
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They didn't sell/rent Sky Residences very well, a mix of overpriced condos and rental prices, lack of rental incentives, poor marketing and an excess of supply in the area, with several other buildings getting ready at the same time in the area, with lower prices.
This, plus terrible market conditions and bad planning.
My guess is that they need to at least double the number of sold AND rented units on Sky Residences and the JW (get to roughly 65% occupancy) to piggy bank before starting this one. I'll bet it starts construction within the next 1 to 2 years and starts occupancy in 3 to 4.
 
Maybe they need to reduce the prices. That's what people in the downtown condo resale market have had to do in the past few years if they want to sell their places. That's also what Westrich did in Encore to help move some of the remaining units in the last year.
 
^^^^ can't be -- the cost of building these structures must average out at $600.00+ per square foot (including land, interest, taxes, and other soft costs). I'd be mighty surprised if a developer could make the numbers jive (or jibe) at $550.00 or less in either a sell or a rental market.
 
Can be!

You most certainly do not have to have them average out to $600/sqft to be viable.

Encore was in the 550 range, Fox was in the 500 range and resale there are tons available for 400-500.
 
^^^^ if that is true (and I have my doubts) it would go to a clear explanation of why no one is building condos -- what developer in his/her right mind would want to build condos and sell them at a loss, promoting a race to the bottom. I can see some anomalies during COVID but as a general trend this is a financially unsustainable model -- same is true for rentals. Something is way off here in terms of your numbers Ian; otherwise construction in Edmonton would grind to a complete halt.
 
Construction costs for delivering concrete high-rise product certainly ranges, but last I saw it was ~$350-400/sqft which does not include other hard or soft costs.

Wood frame condos in and around the core can be delivered for closer to $300-325/sqft.
 
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IanO said:
Construction costs for delivering concrete high-rise product certainly ranges, but last I saw it was ~$350-400/sqft which does not include other hard or soft costs.

Wood frame condos in and around the core can be delivered for closer to $300-325/sqft.
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I'm not entirely sure what COVID has done to total construction costs, but pre-covid, you could definitely get concrete high rise rental built for sub-$300/sq ft (construction cost only). Not super high end mind you, but decent enough.
 
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